News

Press Release - Food Empire Maintains Steady Performance In Q1 2003 Posts 44% Increase In Group Revenue And Profit Before Tax

Singapore, 22 May 2003 - SGX-listed Food Empire Holdings, a leading food and beverage manufacturer, has continued to deliver a steady performance for the first quarter ended 31 March 2003.

Group Revenue for the first quarter 2003 rose 44.3% to S$29.4 million while Group Profit Before Tax increased 43.9% to S$4.5 million. Group Profit After Tax And Minority Interests Attributable to Shareholders grew 31.1% to $2.9 million. Despite the ongoing difficult business environment, the Group was able to achieve this double-digit growth due to stronger sales in its key market segments of Russia, Eastern Europe and Central Asia .

Financial Highlights
(Q1 ended 31 March)	Q1 2003 S$ million	Q1 2002 S$ million	% Change
Revenue	$29.4	$20.4	+44.3%
Profit Before Tax	$4.5	$3.1	+43.9%
Profit After Tax & Minority Interests	$2.9	$2.2	+31.1%

The Group's performance in its core markets of Russia, Eastern Europe and Central Asia continued to improve in Q1 2003 compared to the first quarter of the previous fiscal year. Russia contributed 61.2% of Group Revenue followed by Eastern Europe and Central Asia with 27.8%. The remaining revenue contribution came from the other markets such as Western Europe, Vietnam, China and Middle East.

Revenue in Russia rose 38.0% in the first quarter as it benefited from the successful launch of new products and the opening of new distribution channels. Sales in Central Asia and Eastern Europe surged by 82.5% due mainly to stronger demand for the traditional line of products following intensified advertising and promotions to build market share.

Revenue increased in both the beverage and non-beverage product categories for the period under review. Beverage products sales grew 45.3% largely due to stronger demand for 3-in-1 instant coffee. The beverage category remained the core segment, contributing 90.1% to Group Revenue.

Food Empire Holdings Managing Director Mr Tan Wang Cheow said: "We are pleased with our Group's first quarter performance. Global market sentiments in the first quarter of 2003 were exacerbated by the US-Iraq war and the outbreak of the Severe Acute Respiratory Syndrome (Sars). However, we were fortunate that our key markets were not adversely impacted by those circumstances."

"The markets that the Group operates in will continue to be competitive for the rest of this year. However, the Group will continue to invest in brand building through advertisements and promotions, product quality and packaging designs to gain consumer loyalty and build on its competitive strength."

***End***

This news release should be read in conjunction with the full set of financial results posted by Food Empire Holdings today on Masnet.

About Food Empire Holdings

Listed on the main board of the Singapore Exchange, Food Empire Holdings is a leading food and beverage company that manufactures and markets instant beverage products, frozen convenience food and confectionery. It also has a wholesale business that trades in frozen seafood.

Food Empire Holdings' products are exported to over 40 countries in markets such as Russia, Eastern Europe, Central Asia, China, Indochina, Australia and the US. The Group has 12 offices (representative and liaison) in 11 countries in Russia, Ukraine, Kazakhstan, Poland, Turkey, Belgium, UAE, Iran, Mongolia, China and Vietnam.

The Group's core products include a wide variety of regular and flavoured coffee mixes and cappuccinos, instant chocolate, instant breakfast cereal and flavoured fruit teas. Food Empire also markets a refreshing range of confectionery including butterscotch, coffee, cola and fruity chewy candies, and a delectable assortment of frozen convenience food.

Food Empire has more than 170 types of products under its own brands - MacCoffee, Klassno, FesAroma, B?same, Temasek Royal, Express, EagleStar, OrienBites, MacCandy and MacFood.



Issued For and On Behalf of Food Empire Holdings by:


The Blue Edge Pte Ltd
(Business communications consultancy)

For more information please contact:
Ms Jenny Lam
Director
Tel: 65-67383845
HP: 65-97696889
bizmail@theblueedge.com

Submitted by Loh Shu Chun, Company Secretary on 22/05/2003 to the SGX